Regulatory capture exists when
A)regulated firms form special interests and influence politicians who appoint regulators through campaign donations.
B)regulated firms pay for favorable public media campaigns.
C)the federal government successfully deregulates an industry.
D)two or more firms merge to gain a majority market share.

Question

Quizplus · Accepted Answer

Regulatory capture occurs when regulated firms form special interests and use their political influence, often through campaign donations, to sway the decisions of regulators in their favor.

Regulatory Capture Exists When